Topics on CGT roll-over tax scheme（4）

Consequences of the Roll-Over

For the Transferring Trust:

• Any capital gain or loss from the asset transfer is disregarded.
• Balancing adjustment amounts for depreciating assets are also disregarded.

For the Receiving Trust:

• The first element of the asset's cost base in the Receiving Trust equals the Transferring Trust's cost base just before the transfer.
• Pre-CGT assets retain their status in the Receiving Trust.
• The Receiving Trust's ownership period for CGT discount purposes includes the period it was owned by the Transferring Trust.

For Beneficiaries:

• The cost base of their interests in the Transferring Trust is proportionate to the market value just before the transfer.
• The cost base of interests in the Receiving Trust is adjusted to reasonably approximate the total interests before the transfer.
• If interests in the Transferring Trust were acquired pre-CGT, corresponding interests in the Receiving Trust are also pre-CGT.
• The ownership period for CGT discount purposes includes ownership in both trusts.

Got questions? Reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment on our live calendar.

• Topics on CGT roll-over tax scheme (1)
• Topics on CGT roll-over tax scheme (2)
• Topics on CGT roll-over tax scheme (3)
• Topics on CGT roll-over tax scheme (5)
• Topics on CGT roll-over tax scheme (6)
• Topics on CGT roll-over tax scheme (7)